Bond sell-off reignites as oil jumps above $105

A surge in crude prices above $105 per barrel, driven by slumping Saudi production, has reignited a bond sell-off. Consequently, US 10-year borrowing costs have reached a three-year high. This rally in oil prices has also impacted consumer costs, with home heating oil prices surpassing £1 per litre. The market volatility reflects the direct correlation between rising energy costs and the subsequent pressure on government borrowing rates across global financial markets.